In a shocking move recently, Microsoft opted to shut down one of its most promising studios, Tango Gameworks. The studio shipped Hi-Fi Rush just last year to great critical acclaim, but the studio did not have any ‘greenlit' projects underway at this point in time, so Microsoft opted to pull the plug as it readjusts its portfolio in the wake of the costly Activision Blizzard acquisition. Now, it has come to light that Tango Gameworks actually had two games in development prior to closing down. 

While Tango Gameworks may not have had an officially ‘greenlit' project in the works, the studio was certainly working to change that. According to former Tango Gameworks developer, Tsuyoshi Okugawa on LinkedIn, the studio had been working on two unannounced projects, one which began development last year, and another that was just beginning to take shape in the last few months.

While Microsoft may not have approved a budget and set milestone targets for any new projects from Tango Gameworks, the company was aware of the studio's future plans. For starters, a Ghostwire: Tokyo sequel was under consideration, something that was confirmed last year in a leaked document submitted to courts as part of the Microsoft vs FTC case.

Additionally, Tango Gameworks pretty directly teased The Evil Within 3 with an easter egg in Hi-Fi Rush, an easter egg that was widely reported on.

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KitGuru Says: This was Microsoft's only Japan-based studio and as we've known for years, Microsoft has been desperately trying to get a foothold in the Japanese market. With that in mind, the decision to close its lone Japanese studio was a bit of a head scratcher.

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